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Nielsen Featured Insights - Biting Into The Indian Snacking Market
Nielsen Featured Insights - Biting Into The Indian Snacking Market
Nielsen Featured Insights - Biting Into The Indian Snacking Market
1
Copyright 2014 The Nielsen Company
45,395
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MARKETING FOCUSING
ON FAST GROWING LOWER
TOWN CL ASSES WILL
DRIVE BETTER GROWTH
IN THE SNACKING AND
IMPULSE SPACE.
SNACKING
METRO
TIER 1
REST OF URBAN
RURAL
Figures in %
Figures in bracket denote growth
Source: Nielsen
SOMETHING TO CHEW ON
The average consumer seldom realizes the amount of thought that
goes into his bag of chips or box of biscuits. But if youre a player in
this sector, you probably know the very real danger of a perfectly good
product being rejected by the market. A product being taken off shelves
is every manufacturers nightmare.
Why do some products succeed while others fail? We have studied and
analysed more than a hundred snacking initiatives and found that the
key lies in building a successful proposition.
REASON TO BELIEVE
CONSUMER SEGMENT
TASTE
INSIGHT
BRAND POSITIONING
BENEFIT
HEADLINE
TAGLINE
SNACK
CONCEPT
Our studies show that creating a path-breaking concept in snacking
is no easy task. As a matter of fact, creating a winning proposition in
the snacking space is observed to be more difficult than other foods.
So what are the factors that will support and amplify your concept? A
concept or proposition is generally made up of the below key factors:
Headline: What is your key differentiator? E.g., The worlds best
biscuits now in India!
Reason to believe: What will build consumer belief in the benefits
of your product? E.g., Crunchy and tasty snacks made from healthy
ingredient X.
Insight: This will tie in with benefits to the consumer. Whats in it for
them? E.g., I want to stay fit and in shape. And I love having tasty
snacks. I wish there was a tasty snack with less fat.
Pack and imagery: The look and feel of your product packaging is what
will differentiate it on shelves.
Tagline: What will build recall in the consumers mind when out
shopping? E.g., No one can eat just one!
While these factors form the basis of a proposition for any industry
in any country, knowing your market is essential. When it comes to
snacking, however, Indian consumers have unique preferences and
habits that retailers and manufacturers should understand to ensure
success.
We also found that Indian consumers particularly look for snacks that
are fresh, crisp and flavourful. 73% of the respondents chose freshness
as the top criteria when choosing a snacking product.
73%
46%
45%
44%
FRESH
CRISPY
FLAVOURFUL
JUICY
43%
41%
41%
39%
FRUITY
CRUNCHY
SMOOTH
HOT
3. A MATTER OF CHOICE
Indian consumers are an adventurous lot. They like trying new flavours,
and more importantly, theyll discuss their choices with others. As a
matter of fact, varianting is a key strategy weve observed particularly in
the snacks space, with marketers launching newer flavours periodically.
This not only gives consumers variety but helps create buzz for a brand.
While limited edition launches help satisfy the consumers requirement
for newness as well as to generate buzz, these launches should not
be treated as innovation. When it comes to varianting, true value add
comes through long-term innovation and this is what would drive
incrementality to your portfolio
4. PRICING IT RIGHT
Coinage is an important phenomenon in the snacking space with the
Rs 5 and Rs 10 SKU growing exponentially. Our study indicates that
maintaining an SKU at these price points do drive success for your
initiative. In 2004, while the below INR 5 price point accounted for a
bulk of sales, nearly a decade later, the situation has changed. When
you look at data from 2012, we see that the INR 5 and 10 price points
have grown significantly.
2
7
16
11
2004
8
10
6
47
21
2012
6
18
32
<5
6-9
10
11-19
20
21-29
30
>30
Source: Nielsen
25.0
INDIAN CO.
DISTRIBUTION
GROWTH%
20.0
15.0
10.0
INDIAN CO.
5.0
INDIAN CO.
MNC
0.0
MNC
INDIAN CO.
-5.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
HIGH 3
LOW 3
A price tag in the Rs. 5-20 range leads to impulsiveness and experimentation
in the category.
DOLLY JHA
EXECUTIVE DIRECTOR
NIELSEN INDIA
ABOUT NIELSEN
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